After experiencing a significant downward move that brought Bitcoin’s price quickly close to the $25K threshold, bearish momentum has temporarily subsided, giving way to a phase of consolidation marked by low volatility.

Despite this, the most likely scenario for Bitcoin appears to be a period of sideways movement followed by a temporary retracement towards the 100-day and 200-day moving averages (MAs).

Technical Analysis

By Shayan

The Daily Chart

The recent wave of intense selling pressure has driven Bitcoin below critical support levels, including the lower boundary of the ascending channel, the 100-day moving average, and the 200-day moving average. These developments strongly suggest a prevailing bearish sentiment among market participants.

However, after finding support in the vicinity of the $25K region, the price has entered a consolidation phase characterized by the formation of smaller candles.

Notably, Bitcoin has started to exhibit a potential double-bottom pattern, a well-recognized bullish reversal pattern, in close proximity to the significant support zone around $25K. This pattern hints at the possibility of a retracement towards the 200-day MA, situated approximately at $27.6K.

Nevertheless, it’s essential to acknowledge the lingering risk of increased selling pressure and the potential for another decline below the $25K mark. Hence, traders should maintain an attentive watch on price action around this crucial level to mitigate further losses.

The 4-Hour Chart

Zooming in on the 4-hour timeframe, it can be observed that the downward trajectory came to a halt as Bitcoin reached the vital support zone at $25K, triggering a brief period of consolidation characterized by subdued volatility.

However, as the price reversed course and surged towards the critical 61.8% Fibonacci level, a key target in the correction phases of the market, selling pressure intensified, leading to another reversal. Consequently, Bitcoin resumed an impulsive retracement, driving its